7.

At the beginning of the year, Kanye contributed a piece of land (FMV = $300,000; AB = $200,000) in exchange for a 50% capital and profit (and loss) interest in KW Partnership. KW reported the following income and expenses for the current tax year:

• Sales revenue: $700,000
• 1231 gain: $60,000
• Long-term capital loss: $10,000
• Qualified dividends: $10,000
• W-2 wages paid to employees: $200,000
• Utilities: $140,000
• Rent: $180,000

No distributions were made this year.

What is Kanyes 704(b) book capital account balance at the end of the tax year?

8.

At the beginning of the year, Kanye contributed a piece of land (FMV = $300,000; AB = $200,000) in exchange for a 50% capital and profit (and loss) interest in KW Partnership. KW reported the following income and expenses for the current tax year:

• Sales revenue: $700,000
• 1231 gain: $60,000
• Long-term capital loss: $10,000
• Qualified dividends: $10,000
• W-2 wages paid to employees: $200,000
• Utilities: $140,000
• Rent: $180,000

No distributions were made this year.

What is Kanyes outside basis at the end of the tax year?